Pembina Pipeline Corp. (Pembina) has entered into agreements to expand the Vantage pipeline system (Vantage Expansion) for an estimated capital cost of US$85 million and is expected to be in service by early 2016 following regulatory and environmental approvals.
The Vantage Expansion increases the mainline capacity from 40,000bbl/d to approximately 68,000bbl/d through the addition of mainline pump stations and the construction of a new 80 km, 8 inch gathering lateral.
Once the Vantage Expansion is in service, Pembina expects that the overall system, including base capacity, expansion capacity and volumes from the company's Saskatchewan Ethane Extraction Plant will result in an EBITDA range of $75 million to $110 million per year, with the base of the range representing consolidated take-or-pay volumes.
Vantage is a recently constructed, approximately 700 km high vapor pressure pipeline that links a growing supply of ethane from the North Dakota Bakken play to the petrochemical market in Alberta. It originates from a large-scale gas plant in Tioga, North Dakota extending northwest, through Saskatchewan and terminating near Empress, Alberta, where it is connected to the Alberta Ethane Gathering System pipeline.